Ryanair Orders 300 Boeing 737-MAX Aircraft Worth $40BN

GO BIG OR GO HOMERyanair Orders 300 Boeing 737-MAX Aircraft Worth $40BN

Ryanair Holdings plc made a groundbreaking announcement on May 9, 2023, regarding its order for 300 Boeing 737-MAX-10 aircraft.

The order comprises 150 firm aircraft and an additional 150 options, scheduled for delivery between 2027 and 2033. With a total value exceeding $40 billion at current list prices, this deal represents the largest order ever placed by an Irish company for US-manufactured goods. However, shareholder approval will be sought at Ryanair’s Annual General Meeting on September 14, 2023, due to the magnitude of the transaction.

The Boeing 737-MAX-10 aircraft are highly fuel-efficient and feature 228 seats, a 21% increase compared to the B737NG. The phased deliveries over the span of 2027 to 2033 will enable Ryanair to generate more than 10,000 new jobs for pilots, cabin crew, and engineers. This move aligns with their disciplined growth strategy, projecting an 80% increase in annual traffic from 168 million passengers in March 2023 to 300 million passengers by March 2034. Approximately 50% of the new aircraft will replace older B737NGs, ensuring Ryanair maintains one of Europe’s youngest, most environmentally friendly, and fuel-efficient aircraft fleets.

Aside from significant revenue growth, the additional seats and improved fuel and carbon efficiency will further enhance Ryanair’s unit-cost advantage over its European competitors. This order positions Ryanair to sustain traffic and tourism growth while offering lower fares and reduced emissions per flight across all European countries. The airline is at the forefront of leading the post-COVID traffic recovery, revitalizing the tourism industry and creating jobs.

Ryanair anticipates funding the substantial capital expenditure from internal cash flows, leveraging its robust balance sheet and industry-leading credit rating. The gap between the last delivery of B-8200 “Gamechanger” aircraft in FY25 and the first MAX-10 delivery in FY27 allows the group to remain flexible in its fleet financing strategy.

Dave Calhoun, President and CEO of Boeing, expressed pride in the productive partnership between Boeing and Ryanair, enabling affordable travel for millions of people. The long-standing collaboration continues to strengthen with this landmark deal, serving Ryanair’s goals of providing the lowest fares in Europe.

Ryanair Group CEO, Michael O’Leary, expressed his satisfaction in signing the record-breaking order with Boeing. The new aircraft offer improved fuel efficiency, greener technology, increased seating capacity, and reduced noise levels compared to their B737-NGs. The order, combined with the remaining Gamechanger deliveries, will generate 10,000 highly paid aviation jobs across Europe’s major economies, where Ryanair currently holds a leading position.

In addition to driving revenue and traffic growth, the larger and more efficient aircraft are expected to yield further unit-cost savings, resulting in lower airfares for passengers. Ryanair’s solid financial position and the cost advantages of the Boeing MAX-10 aircraft will solidify the airline’s competitive edge over other EU carriers for the foreseeable future. This order represents a strategic investment that benefits Ryanair, its passengers, employees, and shareholders alike.